29573
Rules and Regulations
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
DEPARTMENT OF AGRICULTURE
Office of the Secretary
7 CFR Part 3
Agricultural Marketing Service
7 CFR Parts 46, 110, 205, 1150, and
1160
Food and Nutrition Service
7 CFR Parts 246 and 278
[0510-AA01]
Department of Agriculture Civil
Monetary Penalties Adjustment
AGENCY: Office of the Secretary,
Agricultural Marketing Service, Food
and Nutrition Service, USDA.
ACTION: Final rule.
SUMMARY: In accordance with the
Federal Civil Penalties Inflation
Adjustment Act of 1990, as amended,
this final rule adjusts civil monetary
penalties imposed by agencies within
USDA to incorporate an inflation
adjustment.
DATES: Effective date: Effective June 23,
2005.
FOR FURTHER INFORMATION CONTACT:
Adam J. Hermann, Esq., OGC, USDA,
Room 2011–S, 1400 Independence
Avenue, SW., Washington, DC 20250–
1400, (202) 260–1615.
SUPPLEMENTARY INFORMATION:
I. The Federal Civil Penalties Inflation
Adjustment Act of 1990
The Federal Civil Penalties Inflation
Adjustment Act of 1990 (Pub. L. 101–
410; 28 U.S.C. 2461 note) (Act), as
amended, requires Federal agencies to
periodically adjust certain civil
monetary penalties (CMPs) for inflation.
Under the Act, a CMP is defined as any
penalty, fine, or other sanction for
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Federal Register
which a Federal statute specifies a
monetary amount, including a range of
minimum and maximum amounts. Each
Executive agency is responsible for
adjusting, pursuant to the Act, all CMPs
within the agency’s jurisdiction. The
Act does not apply to any CMP under
the Internal Revenue Code of 1986,
Tariff Act of 1930, Occupational Safety
and Health Act of 1970, or Social
Security Act.
The Act requires each Executive
agency to make an initial inflation
adjustment for all applicable CMPs not
later than 180 days after the date of
enactment of the Debt Collection
Improvement Act of 1996 (Pub. L. 104–
134) (i.e., April 26, 1996), and
subsequent inflation adjustments at
least once every 4 years thereafter.
USDA published its initial round of
inflation adjustments in the Federal
Register on July 31, 1997, and those
adjustments became effective on
September 2, 1997 (62 FR 40924, July
31, 1997). The USDA initial CMP
adjustments are codified in subpart E of
part 3 of title 7 of the Code of Federal
Regulations (7 CFR 3.91).
This final rule amends 7 CFR 3.91(b)
to reflect the second round of USDA
inflation adjustments. In addition, this
final rule amends 7 CFR 3.91(a) by: (1)
Emphasizing that any increases in CMP
dollar amounts reflected in this rule
apply only to violations occurring after
the effective date of this rule; (2)
emphasizing that the descriptions of the
CMPs listed in 7 CFR 3.91(b) are for
illustrative purposes only, that 7 CFR
3.91 does not amend, interpret,
implement, or alter in any way the
statutory provisions in which the listed
CMPs are set, and that persons should
consult the statutory text in which the
CMPs are set and any implementing
regulations to make applicability
determinations; and (3) adding two
definitions. This final rule also makes
conforming amendments to other
agency regulations that currently specify
dollar amounts for CMPs that are being
adjusted by this final rule.
Method of Calculation
Under the Act, the required inflation
adjustment is determined by adjusting
each applicable CMP by the ‘‘cost-of-
living adjustment’’ (COLA). The COLA
is defined in the Act as the percentage
(if any) by which the Consumer Price
Index (CPI) for the month of June of the
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Vol. 70, No. 99
Tuesday, May 24, 2005
calendar year preceding the adjustment,
exceeds the CPI for the month of June
of the calendar year in which the
amount of such CMP was last set or
adjusted pursuant to law. As required
by the Act, USDA used the CPI for all
urban consumers published by the U.S.
Department of Labor. In calculating the
COLA, USDA rounded to the nearest
tenth.
When USDA first adjusted its CMPs
pursuant to the Act in 1997, USDA
explained that ‘‘[t]he rule contained in
this notice reflects the initial adjustment
to the listed civil monetary penalties
required by the Act’’ (62 FR 40924; July
31, 1997). USDA continues to interpret
the Act such that all listed CMPs
undergo the required adjustment
whenever USDA adjusts those CMPs by
regulation pursuant to the Act and
publishes the regulation in the Federal
Register. In other words, a CMP is
considered to have been adjusted even
though the dollar amount of the penalty
does not increase (a situation that arises
due to application of the rounding
formulas in section 5(a) of the Act).
Thus, all CMPs contained in this final
rule are being adjusted pursuant to the
Act. USDA believes that this
interpretation most accurately reflects
the plain language of the statutory text.
For all CMP adjustments in this final
rule, USDA used the CPI for the month
of June 2004 (189.7) as the numerator
CPI. However, USDA used different
denominator CPI values depending on
the penalty being adjusted:
(1) For those CMPs that were last adjusted
in 1997 via regulation (62 FR 40924, July 31,
1997), USDA used the CPI for the month of
June 1997. Nearly all of the CMPs being
adjusted in this final rule fall into this
category.
(2) For those CMPs specified in statutory
provisions that became effective after the
effective date of the initial round of USDA
CMP adjustments (Sept. 2, 1997), USDA used
the CPI for the month of June of the year in
which those CMPs were last set in statute.
The CMPs in this category are specified in
the following 13 subparagraphs of 7 CFR
3.91(b), as amended by this final rule: (1)(l),
(l)(li), (1)(lii), (1)(liii), (2)(iii), (2)(v), (2)(vi),
(2)(vii), (3)(v), (3)(vi), (7)(ii), (8)(ii), and
(8)(iii).
(3) For those CMPs specified in statutory
provisions that were effective prior to Sept.
2, 1997, but were erroneously excluded from
the initial round of USDA CMP adjustments,
USDA used the CPI for the month of June of
the year in which those CMPs were last set
in statute. The CMPs in that category are
specified in the following 2 subparagraphs of
24MYR1
 29574 Federal Register / Vol. 70, No. 99 / Tuesday, May 24, 2005 / Rules and Regulations

7 CFR 3.91(b), as amended by this final rule:
(2)(xiii) and (8)(i).
Limitations on Adjustment—Rounding
The adjustment of these CMPs is
limited by six specific rounding
formulas set forth in section 5(a) of the
Act. Under the Act, raw inflationary
increases are rounded to the nearest: (1)
Multiple of $10 in the case of penalties
less than or equal to $100; (2) multiple
of $100 in the case of penalties greater
than $100 but less than or equal to
$1,000; (3) multiple of $1,000 in the
case of penalties greater than $1,000 but
less than or equal to $10,000; (4)
multiple of $5,000 in the case of
penalties greater than $10,000 but less
than or equal to $100,000; (5) multiple
of $10,000 in the case of penalties
greater than $100,000 but less than or
equal to $200,000; and (6) multiple of
$25,000 in the case of penalties greater
than $200,000.
Due to these restrictive rounding
rules, not all CMP amounts are being
increased in this final rule. For example,
the CMP for knowingly labeling or
selling a product as organic except in
accordance with the Organic Foods
Production Act was adjusted to $11,000
in the initial round of USDA CMP
adjustments in 1997. The inflation rate
from June 1997 to June 2004 increased
by a factor of 1.2, resulting in a raw
adjustment of $2,200 for this second
round of adjustments. The Act specifies
that inflationary increases for penalties
greater than $10,000 but less than or
equal to $100,000 must be rounded to
the nearest multiple of $5,000. $2,200,
rounded to the nearest multiple of
$5,000, is 0. Therefore, in this final rule,
USDA did not increase the $11,000
amount for this CMP.
Determining which rounding formula
to apply depends on the current amount
of the CMP at the time the calculation
is performed, not on the size of the raw
inflationary increase. Thus, in the
example above, the $2,200 raw
inflationary increase is subject to
rounding formula #4 because the
amount of that CMP is $11,000.
Limitations on Adjustment—The ‘‘10
Percent’’ Cap on Initial Adjustments
Adjustment of CMPs under the Act is
limited in another important respect.
The Act specifies that the first
adjustment of a CMP may not exceed 10
percent of such penalty. Again, USDA
interprets the Act such that the required
adjustment takes place each time USDA
adjusts its CMPs under the Act via
regulation published in the Federal
Register. Therefore, all CMPs that are
currently in 7 CFR 3.91 underwent their
initial adjustment and were subject to
the ‘‘10 percent’’ cap when that
regulation became effective on
September 2, 1997.
In this final rule, USDA applied the
‘‘10 percent’’ cap only to those CMPs
specified in statutes (1) that became
effective after the effective date of the
initial round of USDA CMP adjustments
(Sept. 2, 1997); or (2) that became
effective prior to Sept. 2, 1997, but were
erroneously excluded from the initial
round of USDA adjustments. The CMPs
in these two categories are considered to
have undergone their initial adjustment
in this final rule, regardless of whether
the CMP dollar amounts are being
increased.
Special Considerations
In adjusting the CMPs in this final
rule, USDA determined that some CMPs
currently set forth in 7 CFR 3.91 were
not adjusted correctly when that
regulation was published in 1997. For
those penalties, USDA re-calculated the
COLA and applied the statutory
rounding formulas to determine what
the adjusted CMP amount(s) should
have been when 7 CFR 3.91 was
promulgated in 1997. USDA then used
the corrected dollar amount in
determining the adjusted CMP figures in
this final rule. However, USDA will not
retroactively apply these corrected
dollar amounts to violations occurring
prior to the effective date of this
regulation.

Old incorrect CMP Old corrected New CMP

Old section New section amount(s) CMP amount(s) amount(s)

7 CFR 3.91(b)(1)(xxxviii) ........................ 7 CFR 3.91(b)(1)(xxxviii) ....................... $530 550 650

5,300 5,500 6,500
7 CFR 3.91(b)(1)(xxxix) ......................... 7 CFR 3.91(b)(1)(xxxix) ........................ 5,300 5,500 6,500
7 CFR 3.91(b)(1)(xl) ............................... 7 CFR 3.91(b)(1)(xl) .............................. 1,030 1,100 1,100
7 CFR 3.91(b)(1)(xli) .............................. 7 CFR 3.91(b)(1)(xli) ............................. 520 550 650
7 CFR 3.91(b)(2)(xv) .............................. 7 CFR 3.91(b)(2)(x) ............................... 25,000 27,500 32,500
7 CFR 3.91(b)(2)(xvi) ............................. 7 CFR 3.91(b)(2)(xi) .............................. 12,000 13,200 18,200
7 CFR 3.91(b)(2)(xvii) ............................ 7 CFR 3.91(b)(2)(xii) ............................. 500 550 650
7 CFR 3.91(b)(3)(ii) ................................ 7 CFR 3.91(b)(3)(ii) ............................... 20,000 22,000 27,000
40,000 44,000 54,000
7 CFR 3.91(b)(3)(iii) ............................... 7 CFR 3.91(b)(3)(iii) .............................. 20,000 22,000 27,000
40,000 44,000 54,000
7 CFR 3.91(b)(3)(iv) ............................... 7 CFR 3.91(b)(3)(iv) .............................. 100,000,000 110,000,000 132,000,000
7 CFR 3.91(b)(7) .................................... 7 CFR 3.91(b)(7)(i) ................................ 10,000 11,000 11,000

II. Civil Monetary Penalties Affected by
This Rule
Several USDA agencies administer
laws that provide for the imposition of
CMPs being adjusted by this final rule.
Those agencies are: (1) Agricultural
Marketing Service; (2) Animal and Plant
Health Inspection Service; (3) Food and
Nutrition Service; (4) Food Safety and
Inspection Service; (5) Forest Service;
(6) Grain Inspection, Packers and
Stockyards Administration; (7) Federal
Crop Insurance Corporation; and (8)
Rural Housing Service. The CMPs in
this final rule are listed according to the
applicable administering agency.
III. Waiver of Proposed Rulemaking
In developing this final rule, we are
waiving the usual notice of proposed
rulemaking and public comment
procedures contained in 5 U.S.C. 553.
We have determined that, under 5
U.S.C. 553(b)(3)(B), good cause exists for
dispensing with the notice of proposed
rulemaking and public comment
procedures for this rule. Specifically,
this rulemaking comports and is
consistent with the statutory authority
required by the Federal Civil Penalties
Inflation Adjustment Act of 1990, as
amended, with no issue of policy
discretion. Accordingly, we have
determined that opportunity for prior
comment is unnecessary and contrary to
the public interest, and are issuing this
revised regulation as a final rule that
will apply to all future cases.

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 Federal Register / Vol. 70, No. 99 / Tuesday, May 24, 2005 / Rules and Regulations 29575

IV. Procedural Requirements listed in paragraph (b) of this section, to $2,000 for each violative transaction or
take account of inflation at least once each day the violation continues.
Executive Order 12866
every 4 years as required by the Federal (v) Civil penalty for a violation of the
The Office of Management and Budget Civil Penalties Inflation Adjustment Act Export Apple Act, codified at 7 U.S.C.
(OMB) has reviewed this final rule in of 1990 (Pub. L. 101–410), as amended. 586, has a minimum of $110 and a
accordance with the provisions of (2) Any increase in the dollar amount maximum of $11,000.
Executive Order 12866, Regulatory of a civil monetary penalty listed in (vi) Civil penalty for a violation of the
Planning and Review, and has paragraph (b) of this section shall apply Export Grape and Plum Act, codified at
determined that it does not meet the only to violations occurring after June 7 U.S.C. 596, has a minimum of $110
criteria for a significant regulatory 23, 2005. and a maximum of $11,000.
action. As indicated above, the (3) The descriptions of the civil (vii) Civil penalty for a violation of an
provisions of this final rulemaking monetary penalties listed in paragraph order issued by the Secretary under the
contain inflation adjustments in (b) of this section are for illustrative Agricultural Adjustment Act, reenacted
compliance with the Federal Civil purposes only. This section does not with amendments by the Agricultural
Penalties Inflation Adjustment Act of amend, interpret, implement, or alter in Marketing Agreement Act of 1937,
1990, as amended, for specific any way the statutory provisions in codified at 7 U.S.C. 608c(14)(B), has a
applicable civil monetary penalties. The which the civil monetary penalties maximum of $1,100.
great majority of individuals, listed in paragraph (b) are set. Moreover, (viii) Civil penalty for failure to file
organizations, and entities affected by the descriptions of the civil monetary certain reports under the Agricultural
this regulation do not engage in penalties listed in paragraph (b) do not Adjustment Act, reenacted with
prohibited activities and practices, and necessarily contain a complete amendments by the Agricultural
as a result, we believe that any aggregate description of the circumstances (e.g., Marketing Agreement Act of 1937,
economic impact of this revised requirements regarding the ‘‘state of codified at 7 U.S.C. 610(c), has a
regulation will be minimal, affecting mind’’ of the violator(s), requirements maximum of $110.
only those limited few who may engage regarding the type of law or issuance (ix) Civil penalty for a violation of a
in prohibited behavior in violation of violated, etc.) under which the penalties seed program under the Federal Seed
the statutes. are assessed. Persons should consult the Act, codified at 7 U.S.C. 1596(b), has a
statutory text in which the civil minimum of $37.50 and a maximum of
Regulatory Flexibility Act
monetary penalties are set and any $650.
The provisions of the Regulatory implementing regulations to make (x) Civil penalty for failure to collect
Flexibility Act relating to an initial and applicability determinations. any assessment or fee or for a violation
final regulatory flexibility analysis (5 (4) As used in this section, the of the Cotton Research and Promotion
U.S.C. 603, 604) are not applicable to following terms have the following Act, codified at 7 U.S.C. 2112(b), has a
this final rule because USDA was not meanings: maximum of $1,100.
required to publish a notice of proposed (i) Secretary means the Secretary of (xi) Civil penalty for a violation of a
rulemaking under 5 U.S.C. 553 or any Agriculture; and cease and desist order, or for deceptive
other law. Accordingly, a regulatory (ii) Department means the United
marketing, under the Plant Variety
flexibility analysis is not required. States Department of Agriculture.
(b) Penalties—(1) Agricultural Protection Act, codified at 7 U.S.C.
Paperwork Reduction Act Marketing Service—(i) Civil penalty for 2568(b), has a minimum of $650 and a
This final rule imposes no new improper pesticide recordkeeping, maximum of $11,000.
reporting or recordkeeping requirements codified at 7 U.S.C. 136i–1(d), has: (xii) Civil penalty for failure to pay,
necessitating clearance by OMB. (A) A maximum of $650 in the case collect, or remit any assessment or fee
of the first offense; and or for a violation of a program under the
List of Subjects in 7 CFR Parts 3, 46, (B) A minimum of $1,100 in the case Potato Research and Promotion Act,
110, 205, 246, 278, 1150, and 1160 of subsequent offenses, except that the codified at 7 U.S.C. 2621(b)(1), has a
Administrative practice and penalty shall be less than $1,100 if the minimum of $650 and a maximum of
procedure, Claims, Debt management, Secretary determines that the person $6,500.
Penalties. made a good faith effort to comply. (xiii) Civil penalty for failure to obey
(ii) Civil penalty for a violation of the a cease and desist order under the
■ For the reasons set forth in the
unfair conduct rule under the Perishable Potato Research and Promotion Act,
preamble, amend 7 CFR parts 3, 46, 110, codified at 7 U.S.C. 2621(b)(3), has a
Agricultural Commodities Act, in lieu of
205, 246, 278, 1150, and 1160 as follows: maximum of $650.
license revocation or suspension,
PART 3—DEBT MANAGEMENT codified at 7 U.S.C. 499b(5), has a (xiv) Civil penalty for failure to pay,
maximum of $2,200. collect, or remit any assessment or fee
Subpart E—Adjusted Civil Monetary (iii) Civil penalty for a violation of the or for a violation of a program under the
Penalties licensing requirements under the Egg Research and Consumer Information
Perishable Agricultural Commodities Act, codified at 7 U.S.C. 2714(b)(1), has
■ 1. The authority citation for subpart E Act, codified at 7 U.S.C. 499c(a), has a a minimum of $650 and a maximum of
continues to read as follows: maximum of $1,200 for each such $6,500.
Authority: 28 U.S.C. 2461 note. offense and not more than $350 for each (xv) Civil penalty for failure to obey
■ 2. Revise subpart E to read as follows:
day it continues, or a maximum of $350 a cease and desist order under the Egg
for each such offense if the Secretary Research and Consumer Information
Subpart E—Adjusted Civil Monetary determines the violation was not Act, codified at 7 U.S.C. 2714(b)(3), has
Penalties willful. a maximum of $650.
(iv) Civil penalty in lieu of license (xvi) Civil penalty for failure to remit
§ 3.91 Adjusted civil monetary penalties. suspension under the Perishable any assessment or fee or for a violation
(a) In general. (1) The Secretary will Agricultural Commodities Act, codified of a program under the Beef Research
adjust the civil monetary penalties, at 7 U.S.C. 499h(e), has a maximum of and Information Act, codified at 7

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 29576 Federal Register / Vol. 70, No. 99 / Tuesday, May 24, 2005 / Rules and Regulations
U.S.C. 2908(a)(2), has a maximum of
$6,500.
(xvii) Civil penalty for failure to remit
any assessment or for a violation of a
program regarding wheat and wheat
foods research, codified at 7 U.S.C.
3410(b), has a maximum of $1,100.
(xviii) Civil penalty for failure to pay,
collect, or remit any assessment or fee
or for a violation of a program under the
Floral Research and Consumer
Information Act, codified at 7 U.S.C.
4314(b)(1), has a minimum of $650 and
a maximum of $6,500.
(xix) Civil penalty for failure to obey
a cease and desist order under the Floral
Research and Consumer Information
Act, codified at 7 U.S.C. 4314(b)(3), has
a maximum of $650.
(xx) Civil penalty for a violation of an
order under the Dairy Promotion
Program, codified at 7 U.S.C. 4510(b),
has a maximum of $1,100.
(xxi) Civil penalty for failure to pay,
collect, or remit any assessment or fee
or for a violation of the Honey Research,
Promotion, and Consumer Information
Act, codified at 7 U.S.C. 4610(b)(1), has
a minimum of $650 and a maximum of
$6,500.
(xxii) Civil penalty for failure to obey
a cease and desist order under the
Honey Research, Promotion, and
Consumer Information Act, codified at 7
U.S.C. 4610(b)(3), has a maximum of
$650.
(xxiii) Civil penalty for a violation of
a program under the Pork Promotion,
Research, and Consumer Information
Act of 1985, codified at 7 U.S.C.
4815(b)(1)(A)(i), has a maximum of
$1,100.
(xxiv) Civil penalty for failure to obey
a cease and desist order under the Pork
Promotion, Research, and Consumer
Information Act of 1985, codified at 7
U.S.C. 4815(b)(3)(A), has a maximum of
$650.
(xxv) Civil penalty for failure to pay,
collect, or remit any assessment or fee
or for a violation of a program under the
Watermelon Research and Promotion
Act, codified at 7 U.S.C. 4910(b)(1), has
a minimum of $650 and a maximum of
$6,500.
(xxvi) Civil penalty for failure to obey
a cease and desist order under the
Watermelon Research and Promotion
Act, codified at 7 U.S.C. 4910(b)(3), has
a maximum of $650.
(xxvii) Civil penalty for failure to pay,
collect, or remit any assessment or fee
or for a violation of a program under the
Pecan Promotion and Research Act of
1990, codified at 7 U.S.C. 6009(c)(1), has
a minimum of $1,100 and a maximum
of $11,000.
(xxviii) Civil penalty for failure to
obey a cease and desist order under the
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Pecan Promotion and Research Act of
1990, codified at 7 U.S.C. 6009(e), has
a maximum of $1,100.
(xxix) Civil penalty for failure to pay,
collect, or remit any assessment or fee
or for a violation of a program under the
Mushroom Promotion, Research, and
Consumer Information Act of 1990,
codified at 7 U.S.C. 6107(c)(1), has a
minimum of $650 and a maximum of
$6,500.
(xxx) Civil penalty for failure to obey
a cease and desist order under the
Mushroom Promotion, Research, and
Consumer Information Act of 1990,
codified at 7 U.S.C. 6107(e), has a
maximum of $650.
(xxxi) Civil penalty for failure to pay,
collect, or remit any assessment or fee
or for a violation of the Lime Research,
Promotion, and Consumer Information
Act of 1990, codified at 7 U.S.C.
6207(c)(1), has a minimum of $650 and
a maximum of $6,500.
(xxxii) Civil penalty for failure to obey
a cease and desist order under the Lime
Research, Promotion, and Consumer
Information Act of 1990, codified at 7
U.S.C. 6207(e), has a maximum of $650.
(xxxiii) Civil penalty for failure to
pay, collect, or remit any assessment or
fee or for a violation of a program under
the Soybean Promotion, Research, and
Consumer Information Act, codified at 7
U.S.C. 6307(c)(1)(A), has a maximum of
$1,100.
(xxxiv) Civil penalty for failure to
obey a cease and desist order under the
Soybean Promotion, Research, and
Consumer Information Act, codified at 7
U.S.C. 6307(e), has a maximum of
$6,500.
(xxxv) Civil penalty for failure to pay,
collect, or remit any assessment or fee
or for a violation of a program under the
Fluid Milk Promotion Act of 1990,
codified at 7 U.S.C. 6411(c)(1)(A), has a
minimum of $650 and a maximum of
$6,500, or in the case of a violation that
is willful, codified at 7 U.S.C.
6411(c)(1)(B), has a minimum of
$11,000 and a maximum of $130,000.
(xxxvi) Civil penalty for failure to
obey a cease and desist order under the
Fluid Milk Promotion Act of 1990,
codified at 7 U.S.C. 6411(e), has a
maximum of $6,500.
(xxxvii) Civil penalty for knowingly
labeling or selling a product as organic
except in accordance with the Organic
Foods Production Act of 1990, codified
at 7 U.S.C. 6519(a), has a maximum of
$11,000.
(xxxviii) Civil penalty for failure to
pay, collect, or remit any assessment or
fee or for a violation of a program under
the Fresh Cut Flowers and Fresh Cut
Greens Promotion and Information Act
of 1993, codified at 7 U.S.C.
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6808(c)(1)(A)(i), has a minimum of $650
and a maximum of $6,500.
(xxxix) Civil penalty for failure to
obey a cease and desist order under the
Fresh Cut Flowers and Fresh Cut Greens
Promotion and Information Act of 1993,
codified at 7 U.S.C. 6808(e)(1), has a
maximum of $6,500.
(xl) Civil penalty for a violation of a
program under the Sheep Promotion,
Research, and Information Act of 1994,
codified at 7 U.S.C. 7107(c)(1)(A), has a
maximum of $1,100.
(xli) Civil penalty for failure to obey
a cease and desist order under the
Sheep Promotion, Research, and
Information Act of 1994, codified at 7
U.S.C. 7107(e), has a maximum of $650.
(xlii) Civil penalty for a violation of
an order or regulation issued under the
Commodity Promotion, Research, and
Information Act of 1996, codified at 7
U.S.C. 7419(c)(1), has a minimum of
$1,200 and a maximum of $12,000 for
each violation.
(xliii) Civil penalty for a violation of
a cease and desist order under the
Commodity Promotion, Research, and
Information Act of 1996, codified at 7
U.S.C. 7419(e), has a minimum of
$1,200 and a maximum of $12,000 for
each day the violation occurs.
(xliv) Civil penalty for a violation of
an order or regulation issued under the
Canola and Rapeseed Research,
Promotion, and Consumer Information
Act, codified at 7 U.S.C. 7448(c)(1)(A)(i),
has a maximum of $1,200 for each
violation.
(xlv) Civil penalty for a violation of a
cease and desist order under the Canola
and Rapeseed Research, Promotion, and
Consumer Information Act, codified at 7
U.S.C. 7448(e), has a maximum of
$6,000 for each day the violation occurs.
(xlvi) Civil penalty for a violation of
an order or regulation issued under the
National Kiwifruit Research, Promotion,
and Consumer Information Act, codified
at 7 U.S.C. 7468(c)(1), has a minimum
of $600 and a maximum of $6,000 for
each violation.
(xlvii) Civil penalty for a violation of
a cease and desist order under the
National Kiwifruit Research, Promotion,
and Consumer Information Act, codified
at 7 U.S.C. 7468(e), has a maximum of
$600 for each day the violation occurs.
(xlviii) Civil penalty for a violation of
an order or regulation issued under the
Popcorn Promotion, Research, and
Consumer Information Act, codified at 7
U.S.C. 7487(a), has a maximum of
$1,200 for each violation.
(xlix) Civil penalty for certain
violations under the Egg Products
Inspection Act, codified at 21 U.S.C.
1041(c)(1)(A), has a maximum of $6,500
for each violation.
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 Federal Register / Vol. 70, No. 99 / Tuesday, May 24, 2005 / Rules and Regulations
(l) Civil penalty for a violation of an
order or regulation issued under the
Hass Avocado Promotion, Research, and
Information Act of 2000, codified at 7
U.S.C. 7807(c)(1)(A)(i), has a minimum
of $1,100 and a maximum of $11,000 for
each violation.
(li) Civil penalty for failure to obey a
cease and desist order under the Hass
Avocado Promotion, Research, and
Information Act of 2000, codified at 7
U.S.C. 7807(e)(1), has a maximum of
$11,000 for each offense.
(lii) Civil penalty for a violation of
certain provisions of the Livestock
Mandatory Reporting Act of 1999,
codified at 7 U.S.C. 1636b(a)(1), has a
maximum of $11,000 for each violation.
(liii) Civil penalty for failure to obey
a cease and desist order under the
Livestock Mandatory Reporting Act of
1999, codified at 7 U.S.C. 1636b(g)(3),
has a maximum of $11,000 for each
violation.
(2) Animal and Plant Health
Inspection Service—(i) Civil penalty for
a violation of the imported seed
provisions of the Federal Seed Act,
codified at 7 U.S.C. 1596(b), has a
minimum of $37.50 and a maximum of
$650.
(ii) Civil penalty for a violation of the
Animal Welfare Act, codified at 7 U.S.C.
2149(b), has a maximum of $3,750, and
knowing failure to obey a cease and
desist order has a civil penalty of
$1,650.
(iii) Civil penalty for any person that
causes harm to, or interferes with, an
animal used for the purposes of official
inspections by the Department, codified
at 7 U.S.C. 2279e(a), has a maximum of
$11,000.
(iv) Civil penalty for a violation of the
Swine Health Protection Act, codified at
7 U.S.C. 3805(a), has a maximum of
$11,000.
(v) Civil penalty for any person that
violates the Plant Protection Act (PPA),
or that forges, counterfeits, or, without
authority from the Secretary, uses,
alters, defaces, or destroys any
certificate, permit, or other document
provided for in the PPA, codified at 7
U.S.C. 7734(b)(1), has a maximum of the
greater of: $55,000 in the case of any
individual (except that the civil penalty
may not exceed $1,100 in the case of an
initial violation of the PPA by an
individual moving regulated articles not
for monetary gain), $275,000 in the case
of any other person for each violation,
and $550,000 for all violations
adjudicated in a single proceeding; or
twice the gross gain or gross loss for any
violation, forgery, counterfeiting,
unauthorized use, defacing, or
destruction of a certificate, permit, or
other document provided for in the PPA
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that results in the person deriving
pecuniary gain or causing pecuniary
loss to another.
(vi) Civil penalty for any person
[except as provided in 7 U.S.C. 8309(d)]
that violates the Animal Health
Protection Act (AHPA), or that forges,
counterfeits, or, without authority from
the Secretary, uses, alters, defaces, or
destroys any certificate, permit, or other
document provided under the AHPA,
codified at 7 U.S.C. 8313(b)(1), has a
maximum of the greater of: $55,000 in
the case of any individual, except that
the civil penalty may not exceed $1,100
in the case of an initial violation of the
AHPA by an individual moving
regulated articles not for monetary gain,
$275,000 in the case of any other person
for each violation, and $550,000 for all
violations adjudicated in a single
proceeding; or twice the gross gain or
gross loss for any violation or forgery,
counterfeiting, or unauthorized use,
alteration, defacing or destruction of a
certificate, permit, or other document
provided under the AHPA that results
in the person’s deriving pecuniary gain
or causing pecuniary loss to another
person.
(vii) Civil penalty for any person that
violates certain regulations under the
Agricultural Bioterrorism Protection Act
of 2002 regarding transfers of listed
agents and toxins or possession and use
of listed agents and toxins, codified at
7 U.S.C. 8401(i)(1), has a maximum of
$275,000 in the case of an individual
and $550,000 in the case of any other
person.
(viii) Civil penalty for a violation of
the Horse Protection Act, codified at 15
U.S.C. 1825(b)(1), has a maximum of
$2,200.
(ix) Civil penalty for failure to obey
Horse Protection Act disqualification,
codified at 15 U.S.C. 1825(c), has a
maximum of $4,300.
(x) Civil penalty for knowingly
violating, or, if in the business as an
importer or exporter, violating, with
respect to terrestrial plants, any
provision of the Endangered Species Act
of 1973, any permit or certificate issued
thereunder, or any regulation issued
pursuant to section 9(a)(1)(A) through
(F), (a)(2)(A) through (D), (c), (d) (other
than regulations relating to
recordkeeping or filing reports), (f), or
(g) of the Endangered Species Act of
1973 (16 U.S.C. 1538(a)(1)(A) through
(F), (a)(2)(A) through (D), (c), (d), (f), and
(g)), as set forth at 16 U.S.C. 1540(a), has
a maximum of $32,500.
(xi) Civil penalty for knowingly
violating, or, if in the business as an
importer or exporter, violating, with
respect to terrestrial plants, any other
regulation issued under the Endangered
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29577
Species Act of 1973, as set forth at 16
U.S.C. 1540(a), has a maximum of
$18,200.
(xii) Civil penalty for any other
violation, with respect to terrestrial
plants, of the Endangered Species Act of
1973, or any regulation, permit, or
certificate issued thereunder, as set forth
at 16 U.S.C. 1540(a), has a maximum of
$650.
(xiii) Civil penalty for knowingly and
willfully violating 49 U.S.C. 80502 with
respect to the transportation of animals
by any rail carrier, express carrier, or
common carrier (except by air or water),
a receiver, trustee, or lessee of one of
those carriers, or an owner or master of
a vessel, codified at 49 U.S.C. 80502(d),
has a minimum of $110 and a maximum
of $550.
(3) Food and Nutrition Service—(i)
Civil penalty for hardship fine in lieu of
disqualification, codified at 7 U.S.C.
2021(a), has a maximum of $11,000 per
violation.
(ii) Civil penalty for trafficking in food
coupons, codified at 7 U.S.C.
2021(b)(3)(B), has a maximum of
$27,000 for each violation, except that
the maximum penalty for violations
occurring during a single investigation
is $54,000.
(iii) Civil penalty for the sale of
firearms, ammunition, explosives, or
controlled substances for coupons,
codified at 7 U.S.C. 2021(b)(3)(C), has a
maximum of $27,000 for each violation,
except that the maximum penalty for
violations occurring during a single
investigation is $54,000.
(iv) Civil penalty for any entity that
submits a bid to supply infant formula
to carry out the Special Supplemental
Nutrition Program for Women, Infants
and Children and discloses the amount
of the bid, rebate or discount practices
in advance of the bid opening or for any
entity that makes a statement prior to
the opening of the bids for the purpose
of influencing a bid, codified at 42
U.S.C. 1786(h)(8)(H)(i), has a maximum
of $132,000,000.
(v) Civil penalty for a vendor
convicted of trafficking in food
instruments, codified at 42 U.S.C.
1786(o)(1)(A) and 42 U.S.C.
1786(o)(4)(B), has a maximum of
$11,000 for each violation, except that
the maximum penalty for violations
occurring during a single investigation
is $44,000.
(vi) Civil penalty for a vendor
convicted of selling firearms,
ammunition, explosives, or controlled
substances in exchange for food
instruments, codified at 42 U.S.C.
1786(o)(1)(B) and 42 U.S.C.
1786(o)(4)(B), has a maximum of
$11,000 for each violation, except that
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 29578 Federal Register / Vol. 70, No. 99 / Tuesday, May 24, 2005 / Rules and Regulations
the maximum penalty for violations
occurring during a single investigation
is $44,000.
(4) Food Safety and Inspection
Service—(i) Civil penalty for certain
violations under the Egg Products
Inspection Act, codified at 21 U.S.C.
1041(c)(1)(A), has a maximum of $6,500
for each violation.
(ii) Civil penalty for failure to timely
file certain reports, codified at 21 U.S.C.
467d, has a maximum of $110 per day
for each day the report is not filed.
(iii) Civil penalty for failure to timely
file certain reports, codified at 21 U.S.C.
677, has a maximum of $110 per day for
each day the report is not filed.
(iv) Civil penalty for failure to timely
file certain reports, codified at 21 U.S.C.
1051, has a maximum of $110 per day
for each day the report is not filed.
(5) Forest Service—(i) Civil penalty
for a willful disregard of the prohibition
against the export of unprocessed timber
originating from Federal lands, codified
at 16 U.S.C. 620d(c)(1)(A), has a
maximum of $650,000 per violation or
three times the gross value of the
unprocessed timber, whichever is
greater.
(ii) Civil penalty for a violation in
disregard of the Forest Resources
Conservation and Shortage Relief Act of
1990 or the regulations that implement
such Act regardless of whether such
violation caused the export of
unprocessed timber originating from
Federal lands, codified at 16 U.S.C.
620d(c)(2)(A)(i), has a maximum of
$97,500 per violation.
(iii) Civil penalty for a person that
should have known that an action was
a violation of the Forest Resources
Conservation and Shortage Relief Act of
1990 or the regulations that implement
such Act regardless of whether such
violation caused the export of
unprocessed timber originating from
Federal lands, codified at 16 U.S.C.
620d(c)(2)(A)(ii), has a maximum of
$65,000 per violation.
(iv) Civil penalty for a willful
violation of the Forest Resources
Conservation and Shortage Relief Act of
1990 or the regulations that implement
such Act regardless of whether such
violation caused the export of
unprocessed timber originating from
Federal lands, codified at 16 U.S.C.
620d(c)(2)(A)(iii), has a maximum of
$650,000.
(v) Civil penalty for a violation
involving protections of caves, codified
at 16 U.S.C. 4307(a)(2), has a maximum
of $11,000.
(6) Grain Inspection, Packers and
Stockyards Administration—(i) Civil
penalty for a packer or swine contractor
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violation, codified at 7 U.S.C. 193(b), (ii) Civil penalty for equity skimming
has a maximum of $11,000. under section 543(a) of the Housing Act
(ii) Civil penalty for a livestock of 1949, codified at 42 U.S.C.
market agency or dealer failure to 1490s(a)(2), has a maximum of $27,500.
register, codified at 7 U.S.C. 203, has a (iii) Civil penalty under section 543(b)
maximum of $650 and not more than of the Housing Act of 1949 for a
$37.50 for each day the violation violation of regulations or agreements
continues. made in accordance with Title V of the
(iii) Civil penalty for operating Housing Act of 1949, by submitting false
without filing, or in violation of, a information, submitting false
stockyard rate schedule, or of a certifications, failing to timely submit
regulation or order of the Secretary information, failing to maintain real
made thereunder, codified at 7 U.S.C. property security in good repair and
207(g), has a maximum of $650 and not condition, failing to provide acceptable
more than $37.50 for each day the management for a project, or failing to
violation continues. comply with applicable civil rights
(iv) Civil penalty for a stockyard statutes and regulations, codified at 42
owner, livestock market agency and U.S.C. 1490s(b)(3)(A), has a maximum
dealer violation, codified at 7 U.S.C. of the greater of: Twice the damages the
213(b), has a maximum of $11,000. Department, guaranteed lender, or
(v) Civil penalty for a stockyard project that is secured for a loan under
owner, livestock market agency and Title V, suffered or would have suffered
dealer compliance order violation, as a result of the violation; or $55,000
codified at 7 U.S.C. 215(a), has a per violation.
maximum of $650.
(vi) Civil penalty for a failure to file PART 46—REGULATIONS (OTHER
required reports, codified at 15 U.S.C. THAN RULES OF PRACTICE) UNDER
50, has a maximum of $110. THE PERISHABLE AGRICULTURAL
(vii) Civil penalty for live poultry
COMMODITIES ACT, 1930.
dealer violations, codified at 7 U.S.C.
228b–2(b), has a maximum of $27,000. ■ 3. The authority citation for part 46
(viii) Civil penalty for a violation, continues to read as follows:
codified at 7 U.S.C. 86(c), has a
Authority: Sec. 15, 46 Stat. 537; 7 U.S.C.
maximum of $97,500. 499o.
(7) Federal Crop Insurance
■ 4. Revise § 46.45(c)(1)(iii) to read as
Corporation—(i) Civil penalty for any follows:
person who willfully and intentionally
provides any false or inaccurate § 46.45 Procedure in administering section
information to the Federal Crop 2(5) of the Act.
Insurance Corporation or to an approved * * * * *
insurance provider with respect to an (c) * * *
insurance plan or policy that is offered (iii) (A) The schedule for informal
under the authority of the Federal Crop disposition is as follows:
Insurance Act, codified at 7 U.S.C.
1506(n)(1)(A), has a maximum of Violation Disposition
$11,000.
1st ..................... .................... (1)
(ii) Civil penalty for any person who
2d ...................... .................... (1)
willfully and intentionally provides any (2) (3 )
false or inaccurate information to the 3d ...................... $200 $250
Federal Crop Insurance Corporation or 4th ..................... 350 500
to an approved insurance provider with 5th ..................... 500 1,000
respect to an insurance plan or policy 6th ..................... 1,000 2,200
that is offered under the authority of the 7th ..................... 2,200 2,200
Federal Crop Insurance Act, or who fails 1 Warning letter.
to comply with a requirement of the 2 If serious violation.
Federal Crop Insurance Corporation, 3 Very serious violation.
codified at 7 U.S.C. 1515(h)(3)(A), has a (B) Informal disposition of
maximum of the greater of: The amount misrepresentation violations is not
of pecuniary gain obtained as a result of limited to seven occurrences and will be
the false or inaccurate information or considered for further violations.
the noncompliance; or $11,000. * * * * *
(8) Rural Housing Service—(i) Civil
penalty for a violation of section 536 of PART 110—RECORDKEEPING ON
Title V of the Housing Act of 1949, RESTRICTED USE PESTICIDES BY
codified at 42 U.S.C. 1490p(e)(2), has a CERTIFIED APPLICATORS; SURVEYS
maximum of $110,000 in the case of an AND REPORTS.
individual, and a maximum of
$1,100,000 in the case of an applicant ■ 5. The authority citation for part 110
other than an individual. continues to read as follows:
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 Federal Register / Vol. 70, No. 99 / Tuesday, May 24, 2005 / Rules and Regulations
Authority: 7 U.S.C. 136a(d)(1)(C), 136i–1,
and 450; 7 CFR 2.17, 2.50.
■ 6. Revise § 110.7 to read as follows:
§ 110.7 Penalties.
Any certified applicator who violates
7 U.S.C. 136i–1(a), (b), or (c) or this part
shall be subject to a civil penalty of not
more than the amount specified in
section § 3.91(b)(1)(i)(A) of this title in
the case of the first offense, and in the
case of subsequent offenses, be subject
to a civil penalty of not less than the
amount specified in § 3.91(b)(1)(i)(B) of
this title for each violation, except that
the civil penalty shall be less than the
amount specified in § 3.91(b)(1)(i)(B) of
this title if the Administrator determines
that the certified applicator made a good
faith effort to comply with 7 U.S.C.
136i–1(a), (b), and (c) and this part.
PART 205—NATIONAL ORGANIC
PROGRAM
■ 7. The authority citation for part 205
continues to read as follows:
Authority: 7 U.S.C. 6501–6522.
§ 205.100 [Amended]
■ 8. Amend § 205.100(c)(1) by removing
‘‘$10,000’’ and adding in its place ‘‘the
amount specified in § 3.91(b)(1)(xxxvii)
of this title’’.
PART 246—SPECIAL SUPPLEMENTAL
NUTRITION PROGRAM FOR WOMEN,
INFANTS AND CHILDREN
■ 9. The authority citation for part 246
continues to read as follows:
Authority: 42 U.S.C. 1786.
§ 246.12 [Amended]
■ 10. Amend § 246.12(l)(1)(x)(C) as
follows:
■ a. Remove in the third sentence ‘‘shall
be $10,000.’’ and add in its place ‘‘shall
be $10,000, except for those violations
listed in paragraph (l)(1)(i) of this
section, where the civil money penalty
shall be the maximum amount per
violation specified in § 3.91(b)(3)(v) of
this title for trafficking violations, or
§ 3.91(b)(3)(vi) of this title for selling
firearms, ammunition, explosives, or
controlled substances in exchange for
food instruments.’’; and
■ b. Remove in the fifth sentence ‘‘may
not exceed $40,000.’’ and add in its place
‘‘may not exceed $40,000, except for
those violations listed in paragraph
(l)(1)(i) of this section, where the total
amount of civil money penalties may not
exceed the maximum amount for
violations occurring during a single
investigation specified in § 3.91(b)(3)(v)
of this title for trafficking violations, or
§ 3.91(b)(3)(vi) of this title for selling
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29579
firearms, ammunition, explosives, or Done at Washington, DC, this 11th day of
controlled substances in exchange for May, 2005.
food instruments.’’. Mike Johanns,
Secretary, U.S. Department of Agriculture.
PART 278—PARTICIPATION OF (For amendments to 7 CFR Part 3)
RETAIL FOOD STORES, WHOLESALE
Kenneth C. Clayton,
FOOD CONCERNS AND INSURED
FINANCIAL INSTITUTIONS Acting Administrator, Agricultural Marketing
Service.
(For amendments to 7 CFR Parts 46, 110, 205,
■ 11. The authority citation for part 278
1150, and 1160)
continues to read as follows:
Roberto Salazar,
Authority: 7 U.S.C. 2011–2036.
Administrator, Food and Nutrition Service.
§ 278.6 [Amended] (For amendments to 7 CFR Parts 246 and
278)
■ 12. Amend § 278.6(j) as follows:
[FR Doc. 05–10153 Filed 5–23–05; 8:45 am]
■ a. Remove ‘‘$20,000’’ and add in its BILLING CODE 3410–01–P
place ‘‘the amount specified in
§ 3.91(b)(3)(ii) of this title;’’ and
■ b. Remove ‘‘$40,000’’ and add in its DEPARTMENT OF AGRICULTURE
place ‘‘the amount specified in
§ 3.91(b)(3)(ii) of this title’’. Animal and Plant Health Inspection
Service
PART 1150—DAIRY PROMOTION
PROGRAM 9 CFR Part 77
■ 13. The authority citation for part 1150 [Docket No. 04–065–1]
continues to read as follows: Tuberculosis; Reduction in Timeframe
Authority: 7 U.S.C. 4501–4513. for Movement of Cattle and Bison
From Modified Accredited and
§ 1150.156 [Amended] Accreditation Preparatory States or
■ 14. Amend § 1150.156(b) by removing Zones Without an Individual
Tuberculin Test
‘‘$1,000’’ and adding in its place ‘‘the
amount specified in § 3.91(b)(1)(xx) of AGENCY: Animal and Plant Health
this title’’. Inspection Service, USDA.
ACTION: Interim rule and request for
PART 1160—FLUID MILK PROMOTION comments.
PROGRAM
SUMMARY: We are amending the
■ regulations concerning tuberculosis in
15. The authority citation for part 1160
continues to read as follows: cattle and bison by reducing, from 6
months to 60 days, the period following
Authority: 7 U.S.C. 6401–6417.
a whole herd test during which animals
§ 1160.214 [Amended] may be moved interstate from a
modified accredited State or zone or
■ 16. Amend § 1160.214(b) as follows: from an accreditation preparatory State
■ a. Remove in the first sentence ‘‘not or zone without an individual
less than $500 nor more than $5,000 for tuberculin test. We have determined
each such violation’’ and add in its place that the 6-month period during which
‘‘not less than nor more than the individual tuberculin tests have not
minimum and maximum amounts been required is too long given the risks
specified in § 3.91(b)(1)(xxxv) of this title of exposure to tuberculosis that exist in
for each such violation’’; and modified accredited and accreditation
preparatory States or zones, especially
■ b. Remove in the second sentence ‘‘not in such States or zones where there are
less than $10,000 nor more than
wildlife populations affected with
$100,000 for each such violation’’ and tuberculosis. This interim rule will
add in its place ‘‘not less than nor more lower the potential risk of movement of
than the minimum and maximum infected animals and decrease the
amounts specified in § 3.91(b)(1)(xxxv) likelihood of tuberculosis transmission.
of this title for each such violation’’. DATES: This interim rule is effective May
18, 2005. We will consider all
comments that we receive on or before
July 25, 2005.
ADDRESSES: You may submit comments
by any of the following methods:
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